Sustainable development and ESG factors in the SME sector: challenges and perspectives for leader

Abstract

Purpose: Analysis of the significance of the concept of sustainable development and environmental, social, and corporate governance (ESG) factors for leaders of Polish small and medium-sized enterprises (SMEs), presented on the example of empirical research conducted in small companies in the Silesian Voivodeship. Design/methodology/approach: A mixed-method approach was applied: quantitative research (a survey conducted among 55 SME managers from the Silesian Voivodeship) and qualitative research (an expert interview), complemented by a literature review and analysis of EU regulations. Research limitations/implications: The limitations of the study result from the non-random sampling method, the small sample size (n = 55), and the focus on a single region, which limits the generalisability of the findings. Practical implications: The findings provide guidance for management in developing ESG strategies, preparing for data reporting within value chains, and obtaining financial support for transformation initiatives. Social implications: Raising awareness of the role of business ethics, labor rights, and social engagement in shaping a company’s image and stability. Originality/value: The value of the article lies in combining the theoretical framework of ESG with up-to-date empirical data (April-May, 2024) concerning the SME sector at a regional level, which makes it possible to assess the level of readiness of enterprises for sustainable transformation. Keywords: ESG, SMEs, sustainable development, non-financial reporting. Category of the paper: research paper.